Context: Recently, the second Addendum to the Protocol on Inland Water Transit and Trade was signed between India and Bangladesh.
About Protocol on Inland Water Transit and Trade (PIWTT)

• Under this India and Bangladesh allows mutually beneficial arrangements for the use of their waterways for movement of goods between the two countries by vessels of both countries.
• This Protocol, which was first signed in 1972 and is a reflection of shared history and friendship between the two countries.
• It was last renewed in 2015 for five years with a provision for its automatic renewal for a further period of five years giving long term assurance to various stakeholders.

Major Highlights of the second addendum

• Routes: The number of Indo Bangladesh Protocol (IBP) routes are being increased from 8 to 10 and new locations are also added to the existing routes.
• Inclusion of Sonamura-Daudkandi stretch of Gumti river (93 Km) as IBP route No. 9 & 10 in the Protocol will improve the connectivity of Tripura and adjoining States with Indian and Bangladesh`s economic centres and will help the hinterland of both the countries.
• The operationalization of Rajshahi-Dhulian-Rajshahi Routes and their extension up to Aricha (270 km) will help the augmentation of infrastructure in Bangladesh.
• It would reduce the transportation cost to the northern part of Bangladesh through this route and will decongest the Land Custom Stations on both sides.

Ports of Call

• Five more Ports of Call and two more extended Ports of Call have been added, increasing the number to eleven Ports of Call and two extended Ports of Call in each country.
• Inclusion of Jogighopa in India and Bahadurabad in Bangladesh as new Port of Call will provide connectivity to Meghalaya, Assam and Bhutan.

Movement on shallow draft mechanized vessels

• Both sides have agreed to introduce trade between Chilmari (Bangladesh) and Dhubri (India) through the use of shallow draft mechanized vessels.
• This initiative will allow export of stone chips and other Bhutanese and North East cargo to Bangladesh and easy access for the traders to the hinterland of Bangladesh, enhancing the local economy in Bangladesh and the lower Assam region of India.

New opportunities on cargo movement

• Under this Protocol, Inland vessels of both the countries can ply on the designated protocol route and dock at Ports of Call in each country, notified for loading/unloading of cargo.
• The Indian transit cargo is mainly coal, fly-ash, Over Dimensional Cargo (ODC) for power projects in North East region.
• The other potential cargo for movement is fertilizers, cement, food grains, agricultural products, containerized cargo etc.